Fitch: Ukraine's foreign currency reserves to grow by $13 bln this year

The National Bank of Ukraine expects country’s foreign currency reserves to increase to $17 billion by the end of 2015 against the current $5.6 billion, thanks to the implementation of the reform program and receipt of international financial assistance, according to Paul Rawkins, a senior director at Fitch Ratings, Russian news agency Prime has reported.

REUTERS

As earlier reported, the IMF and Ukraine have negotiated a new two-year loan program worth of $17.5 billion, a final decision on which is expected to be approved by the IMF Board of Directors on March 11. The IMF loan is part of a $40 billion international aid package for Ukraine over the next four years.

The total “looks large enough” to address Ukraine’s needs for the next four years, boosting reserves and stabilizing the hryvnia, Rawkins said.

“If all that comes together, it looks adequate in the sense that the reserves will be rebuilt to a more manageable level.”

The economy is expected to contract 5%this year after shrinking 7.5% in 2014, according to Fitch, which predicts that a recovery may begin next year.

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